A driver who causes an accident in BC is responsible to compensate other parties involved for their injuries, losses and expenses (such as medical costs and loss of wages) as a result. But what happens if the other driver does not have any or enough insurance coverage to pay for all the injuries, losses and expenses?
The fact of the matter is that every person who has a motor vehicle insured with ICBC or has a valid BC driver’s licence has their own coverage of up to $1 million called Underinsured Motorist Protection (“UMP”). UMP coverage also extends to members of that person’s household. It can be seen as a form of insurance to protect you and your family against drivers who carry insufficient or no insurance themselves.
You can purchase an additional $1 million UMP coverage, for a total of $2 million in UMP coverage, by paying a small annual premium which is currently $25. The excess UMP coverage is a separate insurance policy that covers the person rather than a particular vehicle so you need to attend at your nearest Autoplan broker office and ask to purchase excess UMP coverage.
If you or a member of your household is injured in an accident through no fault of their own, and the other party does have enough insurance coverage to pay for any or all of your injuries, losses and expenses, do not settle with the ICBC without getting legal advice as you may have additional coverage available to you under UMP.